tv BBC News at Five BBC News March 8, 2017 5:00pm-6:01pm GMT
this is bbc news. i'm huw edwards live in westminster — where philip hammond has delivered his budget as chancellor. he's been accused of breaking an election manifesto promise by raising national insurance rates for the self—employed — millions are affected. but there was an extra £2 billion for under—pressure social care services in england — as he painted an upbeat picture of the economy. as we start our negotiations to exit the european union, this budget takes forward our plan to prepare britain for a brighterfuture. labour leaderjeremy corbyn accused the chancellor of ignoring the state of the economy, public services and ordinary people. utter complacency about the crisis facing our public services and complacent about the reality of daily life for millions of people in this country. we'll have the full details and analysis of what it all means. it's 5 o'clock.
we're at westminster in our budget studio on the day chancellor philip hammond delivered his first budget. as the government prepares to start the process of leaving the eu — within weeks — the chancellor said the budget prepared britain "for a brighter future". borrowing forecasts have been revised downwards for the next few years. there's more money for social care in england — and a controversial move to raise national insurance contributions for self—employed workers. labour accused the chancellor of producing a "budget of utter complacency" which ignored a crisis in public services. we'll have details and reaction from westminster and beyond. but first lets take a look at those key announcements made by the chancellor earlier this afternoon.
the chancellor announced a 1% increase in national insurance bills for many self—employed people — plans that would raise £145 million a year by 2021—22 — a pledge which appears to contradict a conservative manifesto pledge not to raise national insurance. he also announced an extra £2 billion for social care over the next three years, with £1 billion available in the next year in england. there were also measures to soften the impact of the business rates revaluation in england with £435 million for firms affected by increases in business rates, including £300 million hardship fund for worst hit as well as a £1,000 discount on rates for pubs with rateable value of less than £100,000. there were further measures affecting the self—employed with a cut in the tax—free dividend allowance for shareholders and directors of small private firms from £5,000 to £2,000 from april next year — a measure which appears to undo a pledge made by george osborne in his budgetjust a year ago.
mr hammond also pledged £100 million to place more gps in accident and emergency departments in england for next winter. there was also a key change in technical education with the introduction of a new t—level qualification — which will replace 13,000 qualifications with just 15. and there'll be an extra £216 million in funding for schools. in terms of the consumer impact — there were no major new announcements — which means previous announcements will remain in place — so a packet of 20 cigarettes will cost you 35 pence more from six o'clock tonight as a result of excise duty changes in the budget. a pint of beer will cost 2p more from monday. there was no change in fuel duty — meaning it will stay as it is for the 2017—18 tax year. in terms of the bigger economic picture the chancellor outlined the office for budget responsibility‘s economic forecasts — which showed that they now expected gdp growth to be at 2% this year that was up on the forecast back in the autumn statementjust a few
months ago, but the forecast for growth over the next three financial years — was down — annual borrowing was down on previous projections with £51.7bn expected to be borrowed in 2016—17, although that rises to £58.3 billion next year — before falling to 40.8 billion in 2018—19 — there was no pledge to reach a budget surplus as there had been in previous budgets. government debt as a percentage of gdp was down slightly to 86.6% — but that figure rises in 2018 to 88.8% before it is slowly projected to come down in the following years. we'll have reaction to all those key announcements in the next hour but first with the story of the day here's eleanor garnier. saving for a rainy day, chancellor? a hint of a smile. any spare cash in there, chancellor?
though really there's not that much to cheer about. 0ur cautious chancellor has already warned there's no money for a spending spree. grinning and bearing it, chancellor? after an early—morning cabinet, he was off to the commons. this, his first and last spring budget. from now on, they'll become an autumn affair. the right honourable philip hammond. we were promised an upbeat speech and that's how the chancellor started. i report today on an economy that has continued to confound the commentators with robust growth, a labour market delivering record employment and a deficit down by over two—thirds. as we start our negotiations to exit the european union, this budget takes forward our plan to prepare britain for a brighterfuture. despite positive economic forecasts, he told mps the uk's debt and borrowing was still far too high. so the only responsible course of action, mr deputy speaker, is to continue with our plan.
undeterred by any short—term fluctuations and undistracted. .. undistracted. .. undistracted by the reckless policies advanced by the opposition. because, mr deputy speaker, we on this side will not saddle our children with ever increasing debt. but after repeated claims the social care system is in crisis, the chancellor promised to help ease the pressure. i am committing additional grant funding of £2 billion to social care in england over the next three years. and he unveiled extra help for small firms worried about changes to business rates, plus a special £1,000 discount for the majority of pubs. but the most controversial move will mean some self—employed workers will face higher tax bills with plans to increase national insurance contributions,
a move that contradicts the conservatives‘ manifesto. the chancellor has already announced there will be cash for new free schools including grammars. there is an extra £500 million to shake up vocational and technical training for 16 to 19—year—olds in england and the science budget is getting a boost with funding for robotics, electric cars and artificial intelligence, but labour is demanding the government does more to deal with the rising cost of living. when she took office the prime minister said, "if you're one of those families, if you're just managing i want to address you directly." this budget does not address them. it failed them. this budget has done nothing to tackle low pay. nothing to solve the state of emergency that persists for so many people demanding and needing health and social care now. and nothing to make a fair economy that truly works for everyone. it's built on unfairness and it's
built on failure to tackle unfairness in our society. the snp were quick to criticise the hike in national insurance. the party of aspiration, taxing those who are self—employed, putting in hard disincentives to starting businesses, to employing people, to stepping out on one's own. i think that's a decision which will come back to haunt this chancellor. the economic forecast might be looking up a bit, but austerity has not gone away. the budget is still tight. so what the chancellor gives away, he needs to balance with tax rises and spending cuts too. when all the budget detail has been unpicked and final assessments have been made, the question for the chancellor will be — has he done enough to deal with the political difficulties without spending too much money as brexit beckons? mr hammond might have chucked out his predecessor's timetable for dealing with the deficit,
but both he and the prime minister still believe balancing the books is the only way to ensure a stable economy that's growing. well — we'll be hearing from jeremy hunt shortly — butjoining me now is the shadow work and pensions secretary debbie abrahams. starting with national insurance, the whole thinking behind that is to make the system fairer, that the advantage that people had needs to be ironed out and the playing field needs to be more level. to accept that logic? in some respects there needs to be a fairer playing field
as you put it for people who are self—employed. 80% of the increase in employment since 2007 is in the self—employed field. but the average income for someone self—employed is around £11,000, so not really high earners. however, they also miss out on support through social security. for example statuary sick pay is not available to them. i have a constituent who works in construction and had a hernia and could not take time off work. another thing left out is statutory maternity pay and again we had constituents who had gone back to work a few days after giving birth which is not healthy for anyone. so it is these things the self—employed miss out on. so our neighbour opposing this measure? we've said there needs to be parity, if you're going to increase the national insurance system for self—employed will also need to consider increasing and making available
social security support. and without that, without that qualification, you cannot support it? it would be difficult as it stands as it is. when you look at the broader picture, for example the fact that there is £2 billion going into social care over three years. for you does that sum of money make sense and do you think that will make a big difference? it makes some start, i think the kings fund said it should be £2 million followed by another £2 billion they swiftly. —— 2 billion followed by another 2 billion. but it is just a sticking plaster on a crisis situation. looking at borrowing figures in the medium term, there has been an improvement in the short—term but medium term, total debt figures, is it not difficult to make the case for finding it not difficult to make the case forfinding more money given it not difficult to make the case for finding more money given that
the chancellor was pretty sombre in terms of the debt burden. he was not saying it was something that was going to go away soon. so is it realistic for you to call for more money to be spent on social care?m is about different choices, the government has now said they will not have a budget surplus. although they play a good tune, they're not seeing the economy performed as well as it should. and we would say on corporation tax, which again makes ita bargain corporation tax, which again makes it a bargain basement economy around that, we will be lower than the g—7 at 17%. and we would not be making the same choices. we need to invest in public services and make sure we ca re in public services and make sure we care for our citizens. that is an interesting debate because on corporation tax, the more it has gone down toward the take is increase. so corporation tax rates
reduced leads to an increase in take—up. reduced leads to an increase in take-up. if we are to be competitive internationally then why must we go below the g—7. that is what is going to happen with the current direction. there are other choices around bank levies, high rates of income tax, and as we heard from the iss and others, the burden around tax and social security changes have fallen on people on low to middle incomes. and people are getting squeezed. there has been an increase in growth in the economy but it is concentrated around the south and london. and my area in the north has not had the same level of growth. although that is slightly picking up. the labour market inequalities, disabled people, there was a huge disabled people, there was a huge disabled employment gap and we need to do things to address that and there was nothing in the budget about that. personal independence
payments, taking 3.7 billion out of support for disabled people and these are not the choice is a civilised society should be making. 0n health spending, and the crisis in the health service as people often see it, what would the labour party said today about spending? is that something that you would reinforce and where would it come from? again i spoke about choice, it isa from? again i spoke about choice, it is a question of different choices we would be making. when we were in power we increased the percentage of gdp spending to the eu average on the health service and now it is well below that. we would seek to improve that. the government has there been bested £10 billion extra into the health service and we know from a report it is more like 4.6
billion. so some fiddling with the numbers i'm afraid. this is about what we hold so dear in this country and we should value that. thank you for coming in. in a moment we'll speak to our economics editor kamal ahmed, —— we can speak to our economics editor kamal ahmed, what is the main impact for you? it is this idea that we have had this much more benign environment for this year. so this very dramatic reduction in the amount of borrowing expected from the government, a very big upgrade in the growth forecast for the economy. but real concerns about the risk going into 2018 and
2019. both the chancellor and the 0ffice 2019. both the chancellor and the office for budget responsibility, the official economic watchdog, were careful not to mention brexit. but thatis careful not to mention brexit. but that is why the reasons why there are still caution about next year. of course we will be then in the teeth of the negotiations to leave the eu. but now we have some time to digest some of the biggest behind what the office for budget responsibility said about the economy, they said there was still the squeeze on people prozac incomes. that consumer confidence could for as inflation rises. so you have this sort of upfront good news for 2017 but then into 2018, worse news and it says the government target, the new target to balance the books by early in the next parliament, it describes that is challenging at best. and thinks it unlikely that balancing the books, despite the good news today, will be
possible by 2020. so we may expect a slightly more upbeat message from both the chancellor and the 0bi are and we really have not had that. thank you very much. —— —— 0br. vicki young, can we start with the national insurance change? vicki young, can we start with the national insurance change ?m vicki young, can we start with the national insurance change? it is pretty clear the headlines tomorrow will be about that. the treasury briefing afterwards, they were getting a hard time. especially about the politics of this, the ma nifesto about the politics of this, the manifesto commitment, the conservatives went into the election pledging not to raise taxes. they called it a tax lock, not raising them but to date that is exactly what they've done, putting up national insurance for the self—employed. so they are in trouble over that. i think most people would see it as a breach of the manifesto commitment. then you
have the policy itself, the argument is about fairness, why should people who are employees pay a higher rate than those who are self—employed when they said things like pensions now have been equalised. clearly it is going to be a very tough selling job especially to conservative mps. listen to this. i do not think we should be going out of our way to tax work and enterprise and success. i know you must do some of it because you need a lot of revenue for a range of public services that we offer. but i think taxes on those things are high enough. it is important to ensure we do not disadvantage self—employed people. this party on this site has been always the party that supports white van man. and on this particular date also quite van woman. i'm not sure that making a minor change at the edges is the right way to go about changing the relationship of taxation between the self—employed
and the ordinarily employed. the response from the treasury is that they're making response from the treasury is that they‘ re making other response from the treasury is that they're making other changes to cut national insurance especially for the lowest paid. but that is going to be an ongoing problem i think that the government. the other major issueis that the government. the other major issue is social care, this extra money, the treasury flagging up £3 billion of all across the uk for social care but also for some help to the nhs to try to help with what was going on in accident and emergency. and yet another review into the funding of social care, will philip hammond be the politician who finally makes what is going to be a very tough decision about all of that. he is coming forward with some ideas but will it be the moment when a politician really ta kes be the moment when a politician really takes that lead. and of course the final thing, brexit, he barely mentioned it. he did speak about, the treasury were asked about this war chest, the idea that he has
about £25 billion by the end of the parliament. the treasury spokesman said he would not call it a war chest but a tank of fuel for a long journey. the journey that they expect to be pretty bumpy. thank you very much. just staying on national insurance contributions for a moment. the chancellor said national insurance contributions for self—employed will increase from nine to 10%. then to 11% the following year. all of which reduces the gap, this was the rational, between what the self—employed and between what the self—employed and be employed pay in national insurance. but the decision is controversial because it appears to contradict a conservative manifesto pledge not to raise vat, income tax or national insurance. so to talk about this, i am nowjoined here in westminster
by the 0br's chairman robert chote. thank you for coming in. the broad picture, let's start with the economic growth. the economy has had more momentum coming through last year than had been anticipated back in november so we pushed up growth forecasts for 2017 up to 2% for this year. we have not changed our view about the total amount by which the economy could grow over the full five years of the forecast. that means if you get more of the good news upfront you end up with a slightly weaker picture for gross looking forward. so we are not intrinsically more pessimistic about the performance of the economy but just there was less spare capacity for the economy to absorb given how well it has been doing over the past few months. and where i weep with the deficit? the deficit is an interesting story, it is
considerably lower this year than anticipated. —— where are we with the deficit. we have not changed our forecast by very much for future yea rs. forecast by very much for future years. there are some one—off factors this year, some factors that the move money between this year and next year. for example the european commission is asking for less of the total amount of money that we will contribute to their budgets in 2017 in the first three months of this year. for most countries it doesn't matter but because we have a financial year starting in april that shifts almost £2 billion out of this year into next. whitehall departments seem to be spending less relative to the plans they had set out injuly relative to the plans they had set out in july than relative to the plans they had set out injuly than we had thought. there is also evidence that people have been taking more action to be the increase in dividend taxation. soa the increase in dividend taxation. so a series of reasons why the deficit is weaker this year than anticipated but not many of them pushed through to suggest further good news in the years to come. so a few unknowns and quite a few people commented earlier that looking ahead
to the point at which the uk has led the eu, whether there are still contributions taking place as they might well be after that time and these could be quite large full stop hardly a factor that kind of thing into your forecast, is hardly a factor that kind of thing into yourforecast, is it hardly a factor that kind of thing into your forecast, is it possible to do that? not really at this stage so we produce a forecast of contributions that we would make to the eu if we were not leaving. then we've made the assumption transparently and said this is what we we re transparently and said this is what we were doing to government in case they wanted us to assume anything different, if there are reductions in those contributions either com pletely in those contributions either completely or in part, we assumed they would just be recycled into other domestic spending. so perhaps spending on particular areas that we would have been getting eu money for orjust on other priorities, for the nhs or whatever. so basically any money that would have been going into the eu is spent somewhere else rather than used to reduce the budget deficit more quickly than would otherwise be case. that could
be said to be quite a set of assumptions to be making. at this stage we do not have —— we do not have much else to go on. if we make an assumption about some particular proportion of those contributions not being spent, it would be fairly arbitrary. this way at least lucky about it and then the people take a different view about where we're going to end up then it is straightforward to calculate the difference. it is notjust about contributions, there are people with concerns about what happens to the state of the economy, the brexit impact on different areas of activity. the future of the motor industry for example. so just to give a sense of the kind of variables you have to work with, and really your consent perhaps that you're dealing with so many unknowns that these forecasts will be badly undermined. at this stage we have got to go with the information we have available to us. we have not changed any of the assumptions we made about brexit in terms of the
policy implications, the broader economic impact over the past five yea rs economic impact over the past five years from what we did back in november. the prime minister has given a speech, there have been papers setting up a greater length some of the things the government may aim for but really we do not know what it will do when confronted with all the choices and trade—offs and where we end up depends on those with whom we are negotiating and not just on what the government wants. asa just on what the government wants. as a broad picture, we are assuming there is less trade in the future, at least for some period of time, imports and exports grow less quickly as we move to new trade regimes. you might get less net inward migration which already seems to be weakening a bit. and less growth in productivity in the next few years because of less investment. so we're stuck with the broad assumptions and i suspect it may be some time before you have a very much firmer basis from which to ta ke very much firmer basis from which to take a different view. and national insurance, there is a political
controversy, but just in insurance, there is a political controversy, butjust in terms of the numbers, interesting today because clearly there is some argument about this, as we understand it this change, self—employed people, this change is all to do with their lives according to the chancellor. but it is not going to yield all that much money. it is not, we are dealing with a small budget by the standards of past budget in terms of the number of measures and size of policy positions taken. the chance is waiting to move to make the autumn budget the main event. the national insurance measure is one of the larger tax measures in a relatively small package of them. so not making a huge amount of difference to the long—term fiscal position. a huge amount of difference to the long-term fiscal position. thank you. let's go straight to nick miller with the weather. a glorious day across the north of
england and northern ireland with plenty of sunshine but the uk topped and tailed by that cloud. we also have cloud and outbreaks of rain in south wales and southern england, most of that light and drizzly. some coastal and hill fog around here. not much in a way of frost overnight. tomorrow, the north of scotla nd overnight. tomorrow, the north of scotland still has scattered showers, also in the northern isles. some outbreaks of rain toward squabble and the channel islands. but the majority having a fine springlike day with temperatures into double figures quite widely. more cloud around on friday but still miles. saturday showing some sunshine. but bands of wet weather moving through as well. so a little bit more unsettled over the weekend.
we are at westminster on budget day and looking at the details of the budget and getting plenty of reaction. the key issue has been of course the planned increase in business rates after that re—evaluation across england and wales. and today the chancellor announced a package of measures for businesses with more than £400 million after concern over the impact of this revaluation. to talk more about this is doctor adam marshall of the british chambers of commerce. i'm alsojoined by lyn knights — she's a small business owner and runs a clothing shop in the suffolk town of southwold. thank you both for coming in. lyn, ami thank you both for coming in. lyn, am i right in saying that on the business rates issue, giving your circumstances, what are your thoughts on that and the kind of
help that has been offered today?” think there is possibly not enough done. it is going to help a bit, but how much? how many councils are there in england, and by the time they spread it out, how much are we actually going to get? if you had a pub, there were big discounts for those. you will certainly get some help. you will be in a better position than before. are you still concerned about the business rate impact? what was the kind of thing you were worried about before? would it put you out of business, for example? we have gone through two wobbles. —— to make world wars. the businesses 165 years old. the chains are coming into the town and taking
over. we want to keep our independence, obviously. the rates are worrying everybody. on national insurer and are worrying everybody. on national insurerand is, your are worrying everybody. on national insurer and is, your thoughts on that in terms of the chancellor trying to say he is changing it, the increase is coming in so the system is more fair — what are your thoughts? that is probably fair. i have a staff of eight people, so it doesn't affect me too much at all. but the principle you agree with?” suppose they have to eat the money out somewhere along the line, and i suppose will have to pay. tip eke the money out. let's talk about business rates and the measures introduced today. are they enough to
satisfy your members? it helps with the short term and the immediate revaluation, when you see businesses with prospective triple increases. this is a system that generates winners and losers and that takes money from firms before they turn over a single pound. it takes money front at —— upfront and it is based on property. it is time the government grabbed the nettle. within the system we currently have, for it could he have done today that would have been more helpful to you? there was a switch in the annual operating on business rates from rpi to cpi that's due to happen soon, in 2020. he could have done that sooner, brought it forward. he could have exempted plant and machinery when businesses invest in their premises, exempt that from rates. we are a situation now very few
investing your premises, your property tax goes up. it is a disincentive. it vexes firms of all sizes and from all sectors across the uk. that is business rates, and your opinion is clear. 0n national insurance, a lot of your colleagues will be impacted, so your thoughts on that. do people accept that there isa on that. do people accept that there is a fairness issue here? people understand the logic that as more and more people become self—employed there contribution to the tax system will come in for more scrutiny, but there are a lot of self—employed people who are entrepreneurs starting businesses for whom this is a big change and a big burden coming quickly. if you add to that the changes the chancellor has made today to david then tax—free allowances, the amount people can take out of their companies without paying tax, that has been reduced twice in recent years. that is to hits for small entrepreneurs in
quick succession, and a lot of people out there will be smarting from that. lyn, give us a sense as a business person, what is the crime that —— climate for you right now? we face brexit, so how do you read the climate and how does it affect you? my small town has only 900 inhabitants, and we rely on visitors coming in. so, it is very difficult, because we are in a very small area, with no... what am i trying to say? we rely on holiday trade for a living. in the wintertime, it can be very quiet, as you obviously realise. in terms of where you are with economic activity now, and we
are facing a brexit process that will be triggered by the end of this month — are you looking forward to the next couple of years with optimism? argue confident? where are you? trying to be confident, but we have to push ahead and live with it. that's the spirit! thank you for coming in. good to see you too, adam. as we mentioned earlier: the chancellor promised an extra £2 billion for under—pressure adult social care services in england. the funding will be available over the next three years, with the first £1 billion being released this year. today, mr deputy speaker, i am awarding additional grant funding of £2 billion to social care in england over the next three years. mr deputy speaker, that is £2 billion over the
next three years, with £1 billion available in 17 — 18, which will allow local authorities to act now to commission new care packages, and forms a bridge to the better care funding that becomes available towards the end of the parliament. of course, mr deputy speaker, this is not only about money. while there are many excellent examples of best practice around the country, at the other end of the scale, just 24 local authorities are responsible for over half of all delayed discharges to social care. so, alongside additional funding, the health and community secretaries will announce measures to identify and support authorities which are struggling, and to ensure more joined up working with the nhs. and we caught sight of the health
secretary, jeremy hunt, who joins us now. thank you for coming in. can i stuck with national insurance? there isa stuck with national insurance? there is a direct allegation today, which is a direct allegation today, which is that you made a specific commitment not to raise national children's in your last manifesto and you've broken that promise today. what do you say to voters? we haven't broken the proms, because the commitment in 2010 was national insurance rates for employees. but the chancellor was doing today was dealing with the fact that we have an unfairness that has arisen in the system, where people are able to change their employment status and not pay as much through the national insurance contributions as everyone else is paying for things like the national health service, the social ca re system, national health service, the social care system, whatever. and what he was saying is, we support entrepreneurs, but people's employment status mustn't be decided by the tax advantages of one route or another. it is fair that everyone should contribute on the same basis to the public services we all enjoy.
that rationale, he clearly explained, and you have underlined it now. in the 2015 manifesto, it says, we can commit to know increases in vat, income tax or national insurance. tax increases would harm the economy and reduced living standards and costjobs. it is difficult to square that with what is an increase in national insurance for self—employed people today, which is why people are saying it is clearly a broken promise. i think that wording refers to employees and the national insurance rates paid by employees. isa insurance rates paid by employees. is a shame it's not clear in the wording of the manifesto.” is a shame it's not clear in the wording of the manifesto. i don't have the wording. it is there, i have the wording. it is there, i have just read it! have the wording. it is there, i havejust read it! it have the wording. it is there, i have just read it! it was clear that we we re have just read it! it was clear that we were not going to raise the rates for employees, but when it comes to the self—employed, we need to have fairness. everyone, whether self—employed or employees, are
using our public services, so it is fair that people should pay the same rates. social care today, at £2 billion injection in england over three years — that is a lot of money, clearly, but there are people today coming into the studio to say that the crisis is of such proportions that that is not enough. they needed to be more than that, possibly twice as much. the first thing is that we recognise that there is a real problem in the social care sector, and ours perspective is very straightforward. —— our perspective. we want every older person to be treated with the highest standards of dignity and respect, and the kind of care that we would want for our own mum or dad or grandparents. we recognise there isa or grandparents. we recognise there is a short—term issue where we need local councils to commission more ca re local councils to commission more care packages for the most vulnerable older people, but also a longer—term question as to how you get the funding into the system so that it get the funding into the system so thatitis get the funding into the system so that it is a sustainable over the long term, and so that we don't get
to the kind of pressures that we are seeing at the moment. so, we did the sums very carefully, we looked, talked to the sector, and we looked at what we thought the gap was for the coming year, and we found £1 billion, which is a very significant amount of money. and that is for immediate help, and that will make a difference to thousands of older people. but we're not saying that's the entire solution, which is why we will have the green paper. we will look at this and make sure we sort out this problem once and for all. how will people see the impact of this £2 billion as it starts to come in? where will they see the impact? soon, within months? there are two ways they will see the impact. 0ne of the blazes i it will mean that people who need local authority support for social care packages, and remember this is means tested, so it is going to the poorest, the most vulnerable people, will find it is easier to get that support, but i
think there will be a direct impact on the nhs, because the nhs has been telling us for some time that the biggest problem they have is not being able to discharge people from hospitals because they can't get proper packages of care from local authorities. this will help the nhs turn things around. it will take a lot of pressure off of a&e departments. we are committed to the 95% target. we think it is one of the most important thing is that the nhs offers the public — that we will be there quickly for you if you need urgent help. and this will help us achieve that target, which we are determined to do. the labour case todayis determined to do. the labour case today is that the social care money obviously will help people who wa nted obviously will help people who wanted more, but it should have been accompanied by a significant investment — he mentioned £8 billion or £10 million — in the health service, which would have allowed these two services to cooperate in a better way. why was there no extra
investment for the health service announced today? there was extra today, because we announced £300 million of capital funding for the new plans that are being used to modernise the nhs up and down the country, and £100 million of capital for a&e departments. there is a simple flaw in the labour argument. it is easy to come onto the bbc and say that you want an extra £10 billion for the nhs, but where does it come from? it can only come from a strong economy. what you had today was a chancellor who was putting forward a prospectus to the british people saying that we are going through choppy times, going through it isa through choppy times, going through it is a big opportunity, but of course, there are risks, and we need to build up the nationalfinances to make sure the economy remains strong so that we can continue to fund the nhs and other public services. the record of this government is that we have put an extra £4 billion into
the nhs this year alone, but it needs a strong economy. i think that's where the labour argument falls down, because they never have an answer as to how they would build up an answer as to how they would build up the economy to allow us to spend that money on public services. no roller coasters talk today, so how would you characterise the kind of vision as we look ahead to war three yea rs, vision as we look ahead to war three years, because clearly, no matter where you stand on brexit, it is an uncertain period. it is, and that is why the chancellor is taking a cautious approach, because he wants to reassure people that if there are bumps on the road, and we help there won't be, then we have the firepower to get through those. what has changed since lastjune, and i was a remainer and was worried about what would happen like lots of people, but we have seen resilience that we had not predicted in the uk economy, which has given us hope. we are also
seeing from theresa may's government that brexit will be a great catalyst and we will tackle some of these big, long—standing problems we have had — in the education system, the technical qualifications, problems we have had for years and years, which today, we saw in the budget a real plan to sort out. problems in our national infrastructure. a few weeks ago, we passed a high—speed rail bill. i think we're seeing that brexit will be a catalyst for making a lot of really important changes for the long term, and that should give us a lot of encouragement. secretary of state, good of you to come in. jeremy wright, the health secretary, but some thoughts on today's budget. let's talk a little more about social care. ray james is from the association of adult social care. social care — £2 billion over
three years — your thoughts? care. social care — £2 billion over three years — your thought57m three years - your thoughts? it is a welcome step in closing the growing gap in the cost of funding the social care that older and disabled people in this country need. i think the government realised that this alone would be enough, and that is why the longer term solution talked about in the green paper will be so important. when we talk about the scale of the problems, and you can tell us more about whether pression points are, i am wondering where this money should go, and where it will be most effective. in the last year, it is important to realise that despite an ageing population, we have seen more care homes closing an opening, and we have seen many parts of the country simply unable to recruit the front line care workers needed to provide people with care and support in their own homes, so i really hope that councils will be quickly able to access this money without any undue strings, and able to make sure it goes into both paying for care,
recruiting care, and making sure that front line workers get paid the increase in the national living wage that they so richly deserve. when you look at the broad picture, again, in terms of the kind of morale in the sector, this is something you can help us with, even after this announcement today, some people have been telling us in the studio that they think the problem is so great that they could have done with 4 billion £6 billion going into the system, notjust for today's problems but looking ahead a few years. how would you characterise in the sector? every minute of every day, front line workers in social care make a very real difference to the lives of people in our country. they deserve to be trained, paid and valued in the way that is consistent with the quality of service we expect from them. they do that despite the financial crisis there has been in social care, and they continue to do that. i think today is an important
step and hopefully turning a corner towards a longer term solution, but that's why i think the green paper on coming together to solve issues for the longer term is so important. what has been announced today definitely helps for 2017 18, but the problems go on much beyond that. hopefully, this government will be able to succeed in working with us and others to help able... provide a lasting and stable solution for social care that has eluded governments for so long. thank you for joining governments for so long. thank you forjoining us, ray governments for so long. thank you for joining us, ray james. governments for so long. thank you forjoining us, rayjames. let's talk about practicalities again — how will the budget affect households? for more on the key measures, i am happy to say that margaret doyle from the accountancy firm deloitte has joined margaret doyle from the accountancy firm deloitte hasjoined us. what would you single out for us today? the big impact is on the
self—employed and unmoved by the chancellor to say, let's have a fairer system, let's have the self—employed pay a rate that is a bit closer to the rate that employees pay in terms of national insurance contributions. when we think of the changer system and the rationale behind it, the fairness rationale, is that something that people will happily accept? what do you think the impact will be?” think people will accept it for a couple of reasons, one of which is that historically, there was a rationale for that lower rate of contributions, which was that the benefits that you got as an employee we re benefits that you got as an employee were that much greater, so there are three main types of benefit that national insurance pays for: the state pension, jobseeker‘s allowa nce, state pension, jobseeker‘s allowance, and maternity pay. we know that we now have a single rate state pension, so that has been equalised. the chancellor signalled today that he is looking at the rate of maternity pay, and it seemed to
me that he might be looking at equalising that, and we know there isa equalising that, and we know there is a underway already in jobseeker‘s allowa nce is a underway already in jobseeker‘s allowance in this move to universal credit. i think the fairness argument is well—established. the other reason, of course, is that we now have a number on the cost, as it were, of the difference between the benefit that the self—employed get and what they pay. hmrc thinks that's about £5 billion a year, so for those reasons, i think people do see the rationale. can i talk to you about the reduction in the tax—free dividend, which were directors and shareholders is a big move. your assessment? it is big, not least because it is very new. we know this £5,000 dividend allowances just coming in now. it was announced by george osborne. it was implemented as part of a broader change to dividend tax policy, whereby for example, for basic rate taxpayers,
who used to be included in the basic allowa nce, who used to be included in the basic allowance, they have separated the tax out and said, actually, you can have this special dividend tax allowa nce, have this special dividend tax allowance, so some people benefited but others lost out. for example, retired people living off dividends, if they had dividends of higher than £5,000, they lost out, and clearly that will be even greater with that being cut in half. a big change of direction in policy terms. a last one, if we can, what else would you single out in terms of changes your clients will be talking to you about? making tax digital, just saying that it will be made easier. i think saying that it will be made easier. ithinka saying that it will be made easier. i think a lot of small—business owners will be extremely relieved about that today, and a lot of tax accountants, and even hmrc themselves will be happy that they get a little bit more time to ease in that very big change. good to talk to you, margaret. thanks for coming in. a pleasure. plenty more
online, as their anomaly is on budget day, and you can find out how the budget will affect you. margaret has given us some pointers lie, but there is a dedicated web page. there isa there is a dedicated web page. there is a calculator on the site as well where you can put your figures is a calculator on the site as well where you can put yourfigures in and see how your household finances are affected. that is it from westminster for now here on the bbc news channel. let's join clive for the rest of the day's news. the mother of an raf serviceman missing since last september says she believes it's "only a matter of time" before his body is found in a landfill site outside cambridge. corrie mckeague disappeared after a night out in bury st edmunds. his mobile phone had been tracked following the course of a bin lorry making its rounds, and police have been searching a landfill site today. it could take them up to 10 weeks to sift through all the rubbish. as a result of our officers' checking and rechecking and diligently going back to the company to establish
the accurate weight, we are here now, and i think that's the important thing — that we're here now. we have mounted this operation, we've taken the advice that we need to run a thorough investigation, a thorough search of this area, and i'm hopeful and confident that we will find some answers for corrie's family. this isn't something that we enter into lightly. you can see by the scale of the operation behind me that there has been an extensive amount of planning that goes into an operation of this kind, and searching of a landfill site is something that police don't do all that often. is the cia hacking into people's computers, phones, and even televisions? well, the wikileaks website has published what it says are leaked files showing the security agency has been listening into people's conversations through their household internet devices, using software developed with the help of m16. 0ur correspondent jonny dymond reports. who is listening when we are watching?
change channel to 103. if the leaks are genuine, then the cia can use some television voice command technology to send our conversations back to the spooks. show me samsung smart. and it is more than just televisions. the convenient technology we surround ourselves with can be turned against us. they are tapping into cars, they are tapping into home tvs, tapping into every device that you would carry that has a battery in it, basically. because of that it is so prevalent, there are so many holes. if you are really sincere about your security and value it, you are going to have to use a third—party to protect it. the leaks are a double whammy for america's central intelligence agency. they let its enemies and critics know what the agency can spy on and they detail with millions of lines of computer code how to do it. it is a treasure trove for hackers
and a betrayal of america's intelligence infrastructure. the damage is being compared to the leaks by edward snowden which revealed the hoovering up of data by the us national security agency and how britain's spies helped out. this is cia's edward snowden, this is huge. in terms of what it will tell the adversaries, then we will essentially have to start over in building tools to get information from our adversaries, just like we did with snowden. these leaks, if real, are a stunning blow to the cia and an embarrassment to their british counterparts. the spies are where they do not want to be, out in the open. jonny dymond, bbc news. one woman has died and another is in a critical condition after a knife attack at a block
of flats in wolverhampton. police had to break into an apartment using stun grenades to distract the attacker, who then turned the knife on himself. superintendent keith fraser is from west midlands police. unarmed officers, not knowing what they would face, have entered the property to protect the occupants. they were confronted by a man armed with a knife, and they deployed their taser, which was initially ineffective. armed officers have then been requested to support the unarmed officers. they have used stun grenades to distract the armed man. i can confirm at this stage that no shots have been fired by police. the armed man has been detained. inside the flat, we have found a woman in her 30s with fatal injuries. unfortunately, she was pronounced dead at the scene. another woman, believed to be in her 50s, was taken to hospital with
serious stab injuries which are critical. the suspect, believed to be in his 30s, as we believe, has turned the knife on himself and was pronounced dead at the scene. i want to stress that the man was armed, so we had to act quickly, and officers did that. as a result of that, two officers have been injured. one has got a stab wound to the arm from the suspect, and another had a leg injury after being chased by the suspect. we believe that those injuries are minor at this stage. i just also want to add that, from our perspective as well, this is a really shocking incident, and our sympathies go out to the families and friends of all involved. superintendent keith fraser of west midlands police. we have an update which says that the man, who turned the knife on himself, he actually
killed his sister. the woman who died was the sister of the attacker, and the injured woman, who is now critically ill in hospital, is the mother of that man who killed his sister. a family tragedy there in wolverhampton. any more on that, i am sure it will be in the six 0'clock news with fiona bruce. that is coming up, but first, time for a look at the weather. nick miller is here. this is a weather watcher view from york today. clear blue sky into parts of north—east england, as you can see on the satellite. the u k has been topped and tailed by cloud. strong to gale force winds may brush the north of northern ireland and northern england. there will be thick cloud into south west england and south wales, which will produce
rain and drizzle. it will be misty and murky, too. they missed the picture to start the day in south—west england tomorrow. rain into cornwall and the channel islands, and that will be on and off through the day. further north, a drier picture of where you have seen rain today, and still largely sunni are closed —— largely sunny day across north wells and north—west england. in the central belt and southern scotland, showers will tend to fade. this strip of wet weather from the channel islands into the far south—west of england, especially cornwall, but the rest of us, a pleasant day to come, with a good of sunshine. temperatures will easily get into double figures in the sun. very pleasant indeed. some places in south—east england may get to 16 celsius. that said, it will turn chilly overnight. in the
eastern side of the uk, some frost overnight. a mild night in the west. patchy, light rain will spread to the north during friday. although friday is mild, it will look very different out there, with all that cloud around. that takes us to the weekend. it will be more on separable —— unsettled. temperatures will come down a little, especially by the end of the weekend, on sunday. i say a little bit, but not by much. you will notice a different feel to things by sunday afternoon. the weekend will be changeable, occasional sunshine, the weekend will be changeable, occasionalsunshine, occasional rain, slightly cooler by sunday. more details online. and more in half an hour. the chancellor's budget — he hits 2.5 million self—employed with higher national insurance contributions. reporter: any spare cash
in there, chancellor? that's despite pledging not to in the party manifesto. but mr hammond says his budget promises a better future. we embark on this next chapter of our history, confident in our strengths and clear in our determination to build a stronger, fairer, better britain. it demonstrates again the appalling priorities of this government. another year, tax breaks for the few, public service cuts for the many. an extra £2 billion is found for social care in england to be spent over the next three years. we'll be looking at the impact of today's budget and how it could affect you. also tonight... the missing airman corrie mckeague —